Bitcoin Technical Analysis and Support/Resistance Levels

The bitcoin bull market that started towards the end of May has been relentless, but the past week of price action has left some unmistakable pivot levels on the 1-hour chart. The price range between $668 and $670 has been used as support twice this week, and once as resistance last Sunday. The other significant pivot area can be found around $720. Price spiked above $720 on Monday and failed to break above this level again on the same day. On Thursday - once price made it above $720 - this area started to act as support. I would say: have these areas marked on your charts.

The market also failed to break above $775 on two occasions, which makes $775 a double resistance zone! The violent sell-off in the last hour clearly shows that market participants are now keeping a close eye on the $775 area.

While the digital currency is in a clear uptrend, the large bearish engulfing candle that just closed on the 1-hour chart may be indicating that the market is getting ready for a retracement. Engulfing candles are used by many seasoned Forex speculators and these patterns are just as effective in a variety of liquid markets like stocks, bonds and commodities.

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Charts source: OKCoin